FINRA Corporate Financing: FINRA Solicits Comments on Proposed Amendments to the Corporate Financing Rule (Underwriting Terms and Arrangements)

Sullivan & Cromwell LLP - May 4, 2017

FINRA is soliciting comments on proposed amendments to FINRA Rule 5110 – the Corporate Financing Rule – which prohibits FINRA members from participating in public offerings with unreasonable underwriting compensation and terms.  The proposal is a complete revision of the rule, makes some substantive changes, clarifies some existing guidance and interpretations and revises the format of the rule.